The asking price is one of the most far-reaching decisions when selling a property. It not only determines how a property is perceived, but also influences demand, marketing time and the sales price actually achieved later.
Many owners deliberately set the asking price higher than the presumed market value. The underlying assumption sounds plausible: room for manoeuvre can always be created later. In practice, however, it is precisely this approach that often leads to longer sales processes and lower proceeds.
A realistic offer price is not a safety net - it is a strategic tool.
Offer price and market value: Why the distinction is crucial
The market value describes the price that can be realised with a high degree of probability under normal market conditions. It results from comparable sales, current demand, location, condition and market situation.
The offer price, on the other hand, is not a market value, but a decision. It signals an expectation to the market. If this expectation is significantly higher than the market value, this immediately creates a difference that prospective buyers recognise and factor into their decisions.
The market not only compares properties, but also alternatives. An offer price that is set too high therefore rarely leads to better negotiations, but often to reluctance.
Key message
It is not the desired price that decides - but the market's willingness to pay.
Why an offer price that is too high extends the marketing period
The first few weeks after the market launch are the decisive phase of a property sale. During this period, a property receives the most attention. If demand fails to materialise, this is no coincidence, but a clear market signal.
Perceptions change as the marketing period increases. Prospective buyers assume that there is room for negotiation, wait and see or continue to compare. Price reductions then no longer seem strategic, but defensive.
A long marketing period is therefore not a neutral situation. It worsens the seller's negotiating position and increases price pressure.
We support you.
Discuss your questions about buying or selling your property personally, without obligation and free of charge with one of our estate agents.
What empirical studies show about the offer price
The fact that an inflated offer price does not lead to better results is also proven by a empirical investigation of the District Savings Bank Cologne with over 1,000 properties for sale. The study analysed the relationship between market value, asking price, actual selling price and marketing time.
The results are clear:
With an offer price of around 120 per cent of the market value, the average sales price achieved was only around 85 per cent of the market value - with very long marketing times at the same time. The same effect was also seen with lower mark-ups: The higher the asking price, the longer the sale took and the lower the proceeds.
Why high asking prices on property portals are deceptive
Many owners are guided by high prices on property portals. They often overlook the fact that these offers are visible because they have not yet been sold. Their presence is not proof of a realistic market value.
It is not uncommon for such properties to have been on the market for months without reservations or completions. If the prices were in line with the market, demand would be significantly higher. Visibility is no substitute for market acceptance.
What has been online for a long time was usually set too high.
Conclusion
The consequence for owners
A realistic asking price often feels cautious at first - especially when compared to asking prices or flashy internet offers. In practice, however, it has been shown time and again that market-driven prices lead to more demand, shorter marketing times and often better sales results.
If you set the asking price too high, you risk a long sales process and a sale price below the actual market value.
The right offer price determines the success of the sale - not the hope of later corrections.
